Jack Welch’s bottom 10%

By / 1 year ago

Jack Welch’s vitality model has been described as a “20-70-10” system. The “top 20” percent of the workforce is most productive, and 70% (the “vital 70”) work adequately. The other 10% (“bottom 10”) are non-producers and should be fired. Rank-and-yank advocates credit Welch’s rank-and-yank system with a 28-fold increase in earnings (and a 5-fold increase in revenue) at GE between 1981 and 2001.

James Anderson

James Anderson is the managing editor of LBM Journal. He can be reached at James@LBMJournal.com or 952.446.7895.